Pipe Dream

We've been lamenting the complexity of our tax system for years, knowing well that venting provides only emotional satisfaction. Tax simplification faces enormous obstacles; nearly everyone benefits from some exemptions or deductions, and removing them in a manner that will be perceived to be "fair" appears to be beyond the reach of our current political actors.

President Bush's 2005 reform proposal was dead on arrival, and the solutions that he listed then are pretty much the same that are being touted today. (Einstein's aphorism bears repeating: Insanity is doing the same thing over and over again and expecting different results.)

Included on the list of special interests who profit from the current system is the tax preparation lobby (CPA firms, law firms, Intuit [Turbotax], H&R Block, etc.) I just wish that these tax experts, many of whom are intelligent and adaptable to other work, would set aside their narrow economic self-interest and put themselves out of a job by helping to simplify the tax system. Everyone else would be much better off.

Confession: every year for the past 30+ years I've had a modest amount of self-employment income derived from tax preparation services, but I would be happy to see it go away if that meant my clients would be able to do their own taxes. Think of all their (and my) hours that would be freed up for more worthwhile pursuits, like planning, innovation, or even leisure. © 2013 Stephen Yuen